Text Wrap Contour Options Not Available in CS6

So I just started using CS6, and I know from CS5 that there used to be the "Dectect Edges" option when trying to do a text wrap around an object shape. Every time I try to text wrap like this in CS6, the "contour options" menu is "greyed out," and I can't adjust my text wrap. Does anyone know how to fix this? I have a screen shot below. It is happening in all of my CS6 documents, around PSDs and objects created in InDesign.